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AB-838 Charitable solicitations: bond.(1991-1992)

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Assembly Bill No. 838
CHAPTER 569

An act to add Section 12599.5 to the Government Code, relating to fundraisers.

[ Filed with Secretary of State  October 07, 1991. Approved by Governor  October 05, 1991. ]

LEGISLATIVE COUNSEL'S DIGEST


AB 838, Peace. Charitable solicitations: bond.
Existing law requires defined “commercial fundraisers for charitable purposes,” as a condition of soliciting funds for charitable purposes, to annually register with the Attorney General.
This bill would require each application for registration or reregistration to be accompanied by a cash deposit or prescribed bond in the amount of $25,000 for the benefit of any person damaged as a result of malfeasance or misfeasance in the conduct of the charitable solicitation and the receipt or control of funds or assets solicited for charitable purposes.

The people of the State of California do enact as follows:


SECTION 1.

 Section 12599.5 is added to the Government Code, to read:

12599.5.
 Each application for registration or renewal of registration under subdivision (b) of Section 12599 shall be accompanied by a cash deposit or by a bond issued by an admitted surety in favor of the State of California and in a form acceptable to the Attorney General. The cash deposit or bond shall be in the amount of twenty-five thousand dollars ($25,000) and shall be for the benefit of any person damaged as a result of malfeasance or misfeasance in the conduct of the activities specified in subdivision (a) of Section 12599. The bond may be in the form of a rider to a larger blanket liability bond.